答案和详解如下： 46.If the inventory turnover ratio is 7, what is the average number of days the inventory is in stock? A) 70 days. B) 52 days. C) 25 days. D) 36 days. The correct answer was B) Average Inventory Processing Period = 365 / inventory turnover = 365 / 7 = 52 days.
47.Paragon Company's operating profits are $100,000, interest expense is $25,000, and earnings before taxes are $75,000. What is Paragon's interest coverage ratio? A) 1 time. B) 4 times. C) 3 times. D) 7 times. The correct answer was B) ICR = operating profit / I = EBIT / I
100,000/25000 = 4
48.Johnson Corp. had the following financial results for the fiscal 2004 year: Current ratio | 2.00 | Quick ratio | 1.25 | Current liabilities | $100,000 | Inventory turnover | 12 | Gross profit % | 25 |
The only current assets are cash, accounts receivable, and inventory. The balance in these accounts has remained constant throughout the year. Johnson’s net sales for 2004 were: A) $300,000. B) $900,000. C) $1,000,000. D) $1,200,000. The correct answer was D) The 25% GP indicates that the cost of goods sold is 75% of sales. The inventory is derived from the difference between current ratio and the quick ratio. The current ratio indicates that the current assets are $200,000 and the quick assets are $125,000. The difference represents the inventory of $75,000. The inventory turnover is used to obtain cost of goods sold of $900,000. The cost of goods sold is 75% of sales, indicating that sales are $1,200,000.
49.Use the following data from Delta's common size financial statement to answer the question: Earnings after taxes | = | 18% | Equity | = | 40% | Current assets | = | 60% | Current liabilities | = | 30% | Sales | = | $300 | Total assets | = | $1,400 |
What is Delta's after-tax return on equity? A) 5.0%. B) 12.0%. C) 18.0%. D) 9.6%. The correct answer was D) Net income after taxes = 300 * .18 = 54
Equity = 1400 * .40 = 560
ROE = Net Income / Equity = 54 / 560 = .0964 = 9.6%
50.Adams Co.'s common sized balance sheet shows that: §
Current Liabilities = 20% §
Equity = 45% §
Current Assets = 45% §
Total Assets = $2,000 What are Adams' long-term debt to equity ratio and working capital? Debt to Equity Working Capital
A) 0.78 $500 B) 0.78 $250 C) 1.22 $250 D) 1.22 $500 The correct answer was A) If equity equals 45% of assets, and current liabilities equals 20%, then long-term debt must be 35%.
Long-Term Debt / Equity = 0.35 / 0.45 = 0.78 Working capital = CA - CL = 45% - 20% = 25% of assets
WC = 2,000(0.25) = $500
51.A firm has a cash conversion cycle of 80 days. The firm's payables turnover goes from 11 to 12, what happens to the firm's cash conversion cycle? It: A) shortens. B) is unchanged. C) lengthens. D) may shorten or lengthen. The correct answer was C) CCC = collection period + Inv Period – Payment period. Payment period = 365/payables turnover = 365/11 = 33; 365/12 = 30. This means the CCC actually increased to 83.
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发表于 2008-5-7 14:27
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